Mr. Erik Milito - The House Committee on Natural Resources ...
Mr. Erik Milito - The House Committee on Natural Resources ...
Mr. Erik Milito - The House Committee on Natural Resources ...
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Executive Summary<br />
Hydraulic fracturing has played an important role in the development of America’s oil and gas resources for nearly 60<br />
years. In the U.S., an estimated 35,000 wells are hydraulically fractured annually and it is estimated that over <strong>on</strong>e<br />
milli<strong>on</strong> wells have been hydraulically fractured since the first well in the late 1940s. As producti<strong>on</strong> from c<strong>on</strong>venti<strong>on</strong>al<br />
oil and gas fields c<strong>on</strong>tinues to mature and the shift to n<strong>on</strong>-c<strong>on</strong>venti<strong>on</strong>al resources increases, the importance of<br />
hydraulic fracturing will also increase.<br />
<str<strong>on</strong>g>The</str<strong>on</strong>g> purpose of this guidance document is to identify and describe many of the current industry best practices used to<br />
minimize envir<strong>on</strong>mental impacts associated with the acquisiti<strong>on</strong>, use, management, treatment, and disposal of water<br />
and other fluids associated with the process of hydraulic fracturing. This document focuses primarily <strong>on</strong> issues<br />
associated with the water used for purposes of hydraulic fracturing and does not address other water management<br />
issues and c<strong>on</strong>siderati<strong>on</strong>s associated with oil and gas explorati<strong>on</strong>, drilling, and producti<strong>on</strong>. It complements two other<br />
API Documents; <strong>on</strong>e (API Guidance Document HF1, Hydraulic Fracturing Operati<strong>on</strong>s—Well C<strong>on</strong>structi<strong>on</strong> and<br />
Integrity Guidelines, First Editi<strong>on</strong>, October 2009) focused <strong>on</strong> groundwater protecti<strong>on</strong> related to drilling and hydraulic<br />
fracturing operati<strong>on</strong>s, [1] which specifically highlights recommended practices for well c<strong>on</strong>structi<strong>on</strong> and integrity of<br />
hydraulically fractured wells, and the sec<strong>on</strong>d (API Guidance Document HF3, Surface Envir<strong>on</strong>mental C<strong>on</strong>siderati<strong>on</strong>s<br />
Associated with Hydraulic Fracturing, publicati<strong>on</strong> pending, but expected in 2nd Quarter of 2010) focused <strong>on</strong> surface<br />
envir<strong>on</strong>mental issues associated with the hydraulic fracturing process. [2]<br />
This document provides guidance and highlights many of the key c<strong>on</strong>siderati<strong>on</strong>s to minimize envir<strong>on</strong>mental and<br />
societal impacts associated with the acquisiti<strong>on</strong>, use, management, treatment, and disposal of water and other fluids<br />
used in the hydraulic fracturing process, including the following.<br />
1) Operators should engage in proactive communicati<strong>on</strong> with local water planning agencies to ensure oil and gas<br />
operati<strong>on</strong>s do not c<strong>on</strong>strain the resource requirements of local communities and to ensure compliance with all<br />
regulatory requirements. Understanding local water needs may help in the development of water storage and<br />
management plans that will be acceptable to the communities neighboring oil and gas operati<strong>on</strong>s. Also, this<br />
proactive communicati<strong>on</strong> will help operators in understanding the preferred sources of water to be used for<br />
hydraulic fracturing by the local planning agency.<br />
2) Basin-wide hydraulic fracturing planning can be beneficial up<strong>on</strong> an operator’s entry into a new operating area or<br />
basin, depending <strong>on</strong> the scale of the planned operati<strong>on</strong>s. <str<strong>on</strong>g>The</str<strong>on</strong>g> planning effort may include a review of potential<br />
water resources and wastewater management opportunities that could be used to support hydraulic fracturing<br />
operati<strong>on</strong>s. This review should c<strong>on</strong>sider the anticipated volumes of water required for basin-wide fracturing in<br />
additi<strong>on</strong> to other water requirements for explorati<strong>on</strong> and producti<strong>on</strong> operati<strong>on</strong>s. Operators should c<strong>on</strong>tinue to<br />
engage local water planning agencies when developing their hydraulic fracturing programs and c<strong>on</strong>sider a broad<br />
spectrum of competing water requirements and c<strong>on</strong>straints, such as: locati<strong>on</strong> and timing of water withdrawal; water<br />
source; water transport; fluid handling and storage requirements; flow back water treatment/disposal opti<strong>on</strong>s; and<br />
potential for water recycling.<br />
3) Up<strong>on</strong> initial development, planning and resource extracti<strong>on</strong> of a new basin, operators should review the available<br />
informati<strong>on</strong> describing water quality characteristics (surface and groundwater) in the area and, if necessary,<br />
proactively work with state and local regulators to assess the baseline characteristics of local groundwater and<br />
surface water bodies. Depending <strong>on</strong> the level of industry involvement in an area, this type of activity may be best<br />
handled by a regi<strong>on</strong>al industry associati<strong>on</strong>, joint industry project, or compact. On a site specific basis, pre-drilling<br />
surface and groundwater sampling/analysis should be c<strong>on</strong>sidered as a means to provide a better understanding of<br />
<strong>on</strong>-site water quality before drilling and hydraulic fracturing operati<strong>on</strong>s are initiated.<br />
4) In evaluating potential water sources for hydraulic fracturing programs, an operator’s decisi<strong>on</strong> will depend up<strong>on</strong><br />
volume requirements, regulatory and physical availability, competing uses, discussi<strong>on</strong>s with local planning<br />
agencies, and characteristics of the formati<strong>on</strong> to be fractured (including water quality and compatibility<br />
vi